How to learn to forecast the Forex market

For those who have just come to the stock exchange, it seems that the main thing is to trade with the trend, that is, open orders in the direction of the existing trend.

In fact, what is more important is not what trend exists at the moment, but what it will be in a minute, hour or day.

That is, you need to predict the further price movement and, based on the forecast, make a decision on the direction of the future transaction.

Therefore, before you start trading on Forex, it is so important to learn how to predict exchange rates; this, so to speak, is the key to successful trading.

A novice trader must know at least the basics of this science; without this, most transactions will be unprofitable.

 

There are two sources of data on the basis of which the analysis is carried out and the forecast is made:

• Fundamental are significant economic, political and social events that affect the value of a certain monetary unit.

For example, the value of the ruble is affected by the price of oil, since it is revenues from the sale of oil that make up a large share of the Russian budget.

A similar impact on the exchange rate is exerted by changes in such indicators as GDP, balance of payments, unemployment rate, prices for other budget-forming goods, and the introduction of sanctions.

Economic and political events in the country play an important role, although the influence of these factors is short-term, but can still cause a strong change in the exchange rate and provides an opportunity to earn money.

Read more about these factors - http://time-forex.com/fundamental/faktory-vliyayushchie-na-kursy-valyut

• Technical approach - the entire history of the trend movement is recorded on the charts of currency pairs, with careful study you can find a lot of different patterns .

It is these patterns that become the basis for a future forecast; the main thing is to learn to see them on graphs.

In technical analysis, not everything is as simple as in the analysis of fundamental factors; the price does not always behave according to the scenario, even if a certain figure appears on the chart or a similar situation arises.

But in most cases, based on these graphs, you can make a completely accurate forecast.

Read about technical analysis here - http://time-forex.com/tehanaliz

In conclusion, I would like to say that there are no 100% accurate forecasts; the trader’s task is to detect the error in time and close the deal.